Scammers leap into high gear with bin Laden killing

THE WATCHDOG

Your patriotic spirits may be soaring in light of our troops finally taking down terrorist Osama bin Laden. But take a breath before allowing that feeling to spur you to action.

Before donating to a 9/11 cause, or buying an "official" commemorative product, do some research. Don't be afraid to ask where proceeds are going on donations, or for details about merchandise.

"Consumers wanting to do something patriotic as it relates to the anniversary of 9/11 should think with their head as well as their heart," said Edward Johnson, president and CEO of the Better Business Bureau of Metro Washington, D.C., and Eastern Pennsylvania.

"Be careful of claims that an item is 'official' merchandise and know who any official sponsor is," Johnson advised.

National Collector's Mint of Port Chester, N.Y., has been criticized and sued for its 9/11 merchandise.

In January, the U.S. Mint warned about the company's 10th Anniversary Sept. 11 Commemorative Dollar, saying consumers could find the advertisements confusing and believe the privately produced coins were government-authorized legal tender.

Two New York congressmen, Sen. Charles Schumer and Rep. Jerrold Nadler, called for the Federal Trade Commission to investigate. They believe sales of the coin are misleading and could undercut sales of an official government medal due out soon.

"National Collector's Mint has no shame," Schumer said in a statement.

Shelly Lustigman, a company attorney, defended the product. He said neither the ads nor the coins are confusing. He said the silver in the coins came from the ground zero site, just as advertised.

"The criticisms were just totally ill-founded," he said. "The company has backed up every one of its claims."

He believes the coins are being targeted by the feds for competitive reasons, as the U.S. Mint prepares to produce its own commemorative medal, with some proceeds funding the National Sept. 11 Memorial & Museum. Schumer and Nadler, both Democrats, sponsored legislation authorizing those medals.

National Collector's Mint, which has a B+ rating from the BBB, has donated more than $2 million to 9/11 causes, Lustigman said.

The FTC wouldn't tell me whether it is investigating. Lustigman said National Collector's Mint submitted documents to the FTC earlier this year and hasn't heard anything since.

The company was investigated over a previous 9/11 commemorative product — the "2004 Freedom Tower Silver Dollar" — resulting in a fine and refunds to customers. A New York judge agreed with the New York attorney general that ads for the product were deceptive and could mislead people into believing the coin was solid silver and official government currency.

National Collector's Mint reimbursed about $2 million to customers, and was fined $369,510.

Even surfing the Internet for information about current events can be risky. In the days since bin Laden's death, scam reports have soared alongside American patriotism, as scammers load websites with viruses and troll for personal information. They see the death of public enemy No. 1 as just another springboard to their greed.

I found several reports about Facebook users and Subway restaurants being targeted by scammers who sent phony messages offering free sandwiches to celebrate bin Laden's death. The ruse was a way for scammers to get personal information out of people. Subway spokesman Kevin Kane said the company was looking into it.

Sam Masiello, chief security officer at Return Path, a New York email company, said he expects many people will be tricked by the various deceitful websites and social media ploys.

"My prediction is that the campaigns sent out with this news event will be particularly effective even if they aren't particularly well-crafted, simply due to the passion that people will have around wanting to get as much information as possible about the news and events that lead to bin Laden's death," Masiello wrote Monday on his blog.

The FBI is advising computer users "to exercise caution when they receive emails that purport to show photos or videos" of bin Laden's death.

There are plenty of reputable news sites to surf. Be wary of sites you've never heard of, especially when prompted to click on links for videos, photos, maps and documents. Internet security firms and trade publications are reporting that malware, spyware and other nastiness lurk on many sites.

As for donations, research charities before giving (one source is http://www.bbb.org/charity). Ask where your donation would go. Not every dollar may go where you think.

Last week, I reported on my blog (http://blogs.mcall.com/watchdog/) about a woman who discovered only 25 percent of her donation would get to the Allentown firefighters, with the fundraising company keeping the rest.

Causes related to 9/11 are no different. The New York Post reported this year that 11 staffers at the National Sept. 11 Memorial & Museum, which is collecting donations for a memorial at ground zero, earned more than $170,000 each, paid by donors. Four of them earned more than $320,000.

More information about National Collector's Mint coins, the upcoming government 9/11 commemorative medal and scams related to bin Laden's death are on my blog.

The Watchdog is published Thursdays and Sundays. Contact me by email at watchdog@mcall.com, by phone at 610-841-2364 (ADOG), by fax at 610-820-6693, or by mail at The Morning Call, 101 N. Sixth St., Allentown, PA, 18101. Follow me on Twitter at mcwatchdog.